The effect of the beneficiary death on outstanding housing loan, Alegal jurisprudence study, Kuwait as a model

Abstract

The study examines the effect of the death of a beneficiary of government housing loans among Kuwaiti citizens in terms of loan settlement after the person’s passing. The importance of the study lies These benevolent government loans have provisions concerning the borrower’s debts in the event of their death before full repayment. As these loans are usually paid back over an extended period due to the manageable installments in comparison to the loan amount, many borrowers may find it challenging to settle the remaining balance of the loans. The main objective of the study is to elucidate the religious, legal, and jurisprudential impact when the borrower’s debts are not settled upon their demise. The researcher analyzes this impact by linking religious and legal texts, clarifying the linguistic and terminological meanings of the terms used, and discussing the contractual relationship between individuals and the government. Furthermore, the study addresses the differences of opinion in Islamic jurisprudence and deduces the most prevalent opinions and judgments while highlighting the religious purpose behind debt settlement. The main problem addressed in the research is centered around the question: “What is the impact of deferred debt on the borrower’s death?” The adopted methodology is descriptive, analytical, and deductive. The researcher concludes that borrowers are negatively affected when they take out loans, even if they are considered benevolent loans. Therefore, borrowers should not be deluded by worldly comforts after their death. The researcher suggests considering legislation that can help establish laws to secure such debts or having the state bear the responsibility to relieve borrowers from the religious implications resulting from unpaid debts. One notable finding is that the beneficiary is religiously affected if he/she does not fulfill the rightful debt after death.